A revocable living trust is basically an agreement under which one individual, commonly known as a trustee, holds title to the real estate for a beneficiary, also known as a beneficiary. The trustee generally holds the title along with a promise to pay. With a revocable living trust you transfer all your assets to the trustee’s ownership. In some cases, a trust may be established to cover estate taxes. Revocable trusts are popular in some specific areas of the world such as the United Kingdom and Australia.
Why would you need a living trust attorney? The IRS will only allow a revocable living trust to be used for the benefit of the beneficiary or beneficiaries of the estate. Therefore, if you are planning on using the living trust to manage your estate, make sure that the beneficiaries are properly informed and that they can take action if necessary. You will also want to consult an experienced living trust attorney who can help you decide if a trust is the best option for your situation.
If there are no special needs or requirements, then a revocable living trust could be the perfect solution. Although this option will not cost you as much money as a trust that does have these requirements, it can be much more difficult to set up. The process of incorporating an irrevocable living trust can be time consuming and confusing, so most individuals with special needs choose to use a living trust instead. A living trust allows you to name several beneficiaries and can be set up to suit your particular estate planning needs.
Living trusts can be helpful for people who have difficulty paying estate taxes because the IRS considers them income. Revocable trusts are designed so that the trustee doesn’t become personally liable for any assets. This is why it’s important to keep in mind that there may be some asset protection issues involved with these types of trusts. In addition, it’s important to remember that even if the beneficiaries are protected from an estate by using a living trust, the person establishing the trust isn’t necessarily protected from creditors or other claims. For that reason, it’s wise to retain a living trust attorney who has experience working with people in this situation.
Once you’ve decided whether you need to establish a living trust or not, you’ll need to consider the different options available to you. You could name multiple beneficiaries and request a durable power of attorney for the purpose of providing them with control over their own finances. You might choose to appoint a primary successor trustee to handle your beneficiaries’ assets should you die before they do. Or, you might choose to appoint just one primary living trust attorney and give that person the power to sign documents and manage your assets on your behalf. Your attorney can explain all of these options to you in great detail.
When you’re ready to name your beneficiaries and decide on which approach is right for you, start by talking with a living trust attorney who can help guide you through the process. He or she can explain the difference between revocable and irrevocable trusts, as well as why it’s important to have a living trust in place should you pass away. By providing a clear roadmap for how your assets will be dispersed, an attorney can ensure that your last wishes are followed and that your family doesn’t become disorganized after you die. There’s no reason why your beneficiaries couldn’t be together, enjoying their inheritances, for years to come.
